The Power of Leverage

The Power of Leverage

Financial leverage is a very powerful tool.  Much like the Egyptians moved massive stones using a only a fulcrum and lever to build the pyramids, financial leverage allows investors to make purchases larger than their capital invested.  We discussed this idea in a...
Limitations on Cash on Cash Return

Limitations on Cash on Cash Return

Our previous post discussed the positives and negatives of using the capitalization rate to evaluate an investment.  Similarly, another quick and easy calculation often used in commercial real estate is the cash on cash return analysis.  The basic premise of the...